Essence Drinks: Innovation and Commercialization Strategy Report

This report examines the business case for Essence Drinks, focusing on its background and the need for innovation to address declining sales in the UK market. It details the importance of the commercial funnel in introducing new products, outlines the stages of the funnel, and emphasizes the sign...Read More

INNOVATION AND
COMMERCIALIZATION

TABLE OF CONTENT
• Introduction
• Background of essence drinks
• Problem
• Commercial funnel
• Stages of commercial funnel
• Importance of commercial funnel
• Risk assessment
• Value creation through frugal creation
• Summary of new product
• Techniques for testing effectiveness of new
products of essence drinks
• Resources required for innovation
• Intellectual property rights
• Tools to protect IPR
• Conclusion
• References

INTRODUCTION
• The business case represents the essence drinks
background with the importance of commercial
funnel to find out solutions to introduce new product
in the UK.
• A brief summary of new product with techniques for
testing effectiveness of new product.
• Along with the description of the resources required
for market research and product development.
• At the end tools to protect intellectual property
rights are been highlighted.

BACKGROUND OF ESSENCE DRINKS
• Essence Drinks was founded by Mr. Akshay Kumar two years ago.
• He launched Essence Drinks with a mango lassi drink as a product into the
market of UK.
• The company with its distribution capability and introduction of innovative
formula of lassi drink achieve significant sale rise in initial first year.
• But the company faces the rapid decrease in sales in its third year because
of the rise in competition in UK.

PROBLEM
• Decrease in the sales of the mango
lassi drink a product of Essence
Drinks in UK due to increase in the
number of competition in UK.
• And a need for new and innovative
product development is seen to by
Essence Drinks to regain the market
share.

COMMERCIAL FUNNEL AND ITS
IMPORTANCE
• It is the process that make the potential
consumer of the product near to products that
are offered by the Essence Drinks.
• Series of marketing and promotional activities
are performed that helps the company to
increase the sales of the products.
• The levels of the commercial funnel might be
different for the organisations but the
traditional model have 4 main stages.

STAGES OF COMMERCIAL FUNNEL
Awareness
• At this stage Essence Drinks have to make its products discoverable by the potential customers..
Interest
• At this stage the customers are becoming aware about the Essence Drinks products.
Desire
• At this stage the customers now have the full information about the products that are offered by the
Essence Drinks.
Action
• At this stage the actual purchase of the products is take place.

IMPORTANCE OF COMMERCIAL FUNNEL
• It serves as a path that help Essence Drinks to attract the customers to buy
the product.
• The information gathered from the process of commercialisation helps to
devise marketing plans that will address the customers needs.
• It helps Essence Drinks to increase the chance of selling its products as
the stages of the funnel provide greater control to persuade customers.

RISK ASSESSMENT
• To effectively develop an innovative product and distribution of the
product into the market of UK.
• Essence Drinks will use the knowledge and resources that are available to
create strategies that will increase sales of the product and helps to
achieve competitive advantage in the market.
• The company is new to the market and have only limited products to offer.
Along-with the rise of competition in the market reduces the sales that had
achieved in the initial years.

VALUE CREATION THOUGH FRUGAL
INNOVATION
• Value to the customers can be delivered
with the application of frugal innovation
process and creation of quality products
at lower costs.
• Frugal innovation absorbs three types of
activities to generate value i.e. significant
reduction in cost, enhancement of core
functions and optimisation of
performance level.

SUMMARY OF NEW IDEA FOR NEW
PRODUCTS FOR ESSENCE DRINKS
• Essence Drinks has introduced mango lassi drink at its initial stage which
had generate a good demand for the product in UK.
• Akshay Kumar wants to introduce new product without removing lassi as
a main component.
• Essence Drinks will develop new flavours for the lassi.
• The main component will be lassi but the taste will be different from
mango lassi.

TECHNIQUES FOR TESTING EFFECTIVENESS OF
NEW PRODUCTS OF ESSENCE DRINKS
• Interactions with the customers: Essence Drinks by creation of a prototype of the
product and ask the customers to use it will help the company to gain key information
about the products.
• Sample offering: Essence Drinks by offering samples to its potential customers will
collect insights of the customers preference and tastes.
• Test advertisements: Essence Drinks create a test advert to provide information
about the product offering and analyse the behaviour of the customers.
• Conducting surveys: A product survey is a good method to obtain essential
information about the new product.

RESOURCES REQUIRED FOR
INNOVATION
• Funds: Essence Drinks will require large amount
of funds to exercise the process of innovation. As
research and development is the important factor
that plays the crucial part in the process which
cannot be possible without funds.
• Human resource: Personnel of the company will
help in the innovation process by providing ideas
for the development of new products. Innovative
ideas comes from the minds of the human,
involvement of personnel is important.

INTELLECTUAL PROPERTY RIGHTS
• These are the rights and protection provided to the
intellectual properties that are newly developed or
existing previously.
• Intellectual properties includes intangible creations
that are created by the human to ease the every day
task.
• Essence Drinks will use these rights to protect the
intellectual properties from theft or being
reproduced by its competitors.

TOOLS TO PROTECT INTELLECTUAL
PROPERTY RIGHTS OF ESSENCE DRINKS
• Trademarks: It is a type of word, phrase, symbol, design or slogan that
helps to identify and differentiate Essence Drinks business from its
competitors. It helps in to protect the identity of the company. Trademarks
have to be registered with the legal authorities that provide legal
protection.
• Patents: It is the type of protection provided to the creator of the product
and stops other parties to create the same product for a particular period.

CONCLUSION
• At the end it has been concluded that Essence Drinks requires a need for the
development of new product to secure its existence in the market of UK.
• The use of innovation tools like commercial funnel and the assessment of the
capabilities of the organisation helps in to provide innovative solutions to the
problem of generating sales.
• Along with the use of tools to protect intellectual properties will help to
preserve the knowledge and techniques to produce new product.
• Thus help in the achievement of the goals of Essence Drinks.

REFERENCES
• Kotsi, F. and Slak Valek, N., 2018. Flying with Nicole Kidman or Jennifer Aniston? Brand
funnel stages’ influence on brand personality. Journal of travel & tourism
marketing, 35(3), pp.365-376.
• Kaliappen, N., Chuah, F., Gorondutse, A.H. and Moktar, S.N.A., 2019. Hybrid
competitive strategy, strategic capability and performance. Journal of Business and Retail
Management Research, 13(4).
• Setiawan, A., Wibowo, A. and Susilo, A.H., 2017, August. Risk analysis on the
development of a business continuity plan. In 2017 4th International Conference on
Computer Applications and Information Processing Technology (CAIPT) (pp. 1-4). IEEE.